4 ‘policy cornerstones’ for Trump’s $1.5 trillion infrastructure plan

It is no secret America’s infrastructure needs some big-league updates. And it’s no surprise President Donald Trump made infrastructure one of the cornerstones of his State of the Union speech.

The American Society of Civil Engineers estimates the nation’s highways, bridges, ports, railways, airports, schools, energy and water infrastructure will require an investment of $4.6 trillion through 2025 to keep the U.S. economy competitive, a daunting figure when you consider the projected funding shortfall of $2 trillion.

In the coming weeks, Congress and the administration are expected to tackle infrastructure modernization in a difficult fiscal environment where government must extract the maximum value out of every single infrastructure dollar invested in order to meet this funding gap.

Associated Builders and Contractors will be recommending ways the White House and Congress can find innovative and effective solutions to finance and improve our nation’s infrastructure and maximize investment for hardworking Americans.

The executive order’s goal of establishing “one federal decision” for major projects and setting an average two-year goal for permitting of construction projects will be a welcome relief to industry stakeholders. Providing timely approvals and certainty for a project’s construction timeline will increase competition and drive down costs.

Second, faster project approval will also attract private investors, increasing the use of public-private partnerships (P3s) that can help bring mothballed construction projects to market in a more economical and efficient manner in certain circumstances.

For example, P3s can enable stakeholders to minimize risks and finance and plan a project’s entire construction and life cycle costs upfront, rather than exposing an asset to fragmented and inadequate funding for operations, maintenance and repairs.

Finally, government must eliminate or rewrite antiquated, ineffective and costly procurement and employment regulations that are a drag on America’s infrastructure investments and its modern economy. Numerous regulations unique to the construction industry discourage competition and steer contracts to special interests at the expense of small businesses and local companies that can deliver to taxpayers the best possible product at the best possible price.

For example, President Trump should rescind a failed Obama administration policy, Executive Order 13502, which encourages the use of government-mandated project labor agreements (PLAs) on large-scale federal construction contracts and permits their use on federally assisted projects procured by state and local governments.